Can't Afford Your Grand Rapids Property Taxes? How the Poverty Exemption Works
In Michigan, a homeowner who can't afford property taxes because of poverty can ask the local Board of Review to cut the home's taxable value by 25% to 100% for the year. In Grand Rapids, you can still apply for 2026: the City Assessor takes applications until just before the December Board of Review ends. Here's who qualifies, what the 2026 income and asset limits are, and how to put together an application the Board can approve.
AT A GLANCE
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How the exemption works
Michigan's General Property Tax Act lets owners whose poverty leaves them unable to pay property taxes get a full or partial exemption on their principal residence. The State Tax Commission's Bulletin 17 of 2025 lays out the rules every local unit follows. Each city has to adopt its own income and asset guidelines, and its Board of Review must follow them exactly.
When you meet every requirement, the Board grants one of four reductions in taxable value for that year:
Board of Review decision | Effect on taxable value |
|---|---|
Full exemption | 100% reduction |
Partial exemption | 75% reduction |
Partial exemption | 50% reduction |
Partial exemption | 25% reduction |
The Board can't use any other percentage unless the City gets State Tax Commission approval. The City's 2026 guidelines don't say how it chooses between full and partial exemptions, so ask the Assessor's Office how your application will be weighed.
The exemption lasts one year. Grand Rapids tells owners to file every year and suggests setting a reminder for a month before December.
A poverty exemption is a one-year decision. Plan to apply again every year.
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Who qualifies in Grand Rapids
The City's 2026 Poverty Exemption General Guidelines list these requirements:
Own and occupy the home, and have a valid Principal Residence Exemption on file with the Assessor. The City's apply page has a link to check your PRE status.
File the application each year after January 1 and before the day prior to the last day of the Board of Review.
Provide federal and state income tax returns filed in the current or prior year for everyone living in the home, including any property tax credit forms.
Show a valid driver's license or other ID.
Show a deed, land contract or other proof of ownership.
Meet the federal poverty income standards set each year by the U.S. Department of Health and Human Services.
Meet the asset test.
The exemption doesn't apply to property owned by a corporation.
The 2026 income test
People in household | Income limit |
|---|---|
1 | $15,650 |
2 | $21,150 |
3 | $26,650 |
4 | $32,150 |
5 | $37,650 |
6 | $43,150 |
7 | $48,650 |
8 | $54,150 |
Each additional person | add $5,500 |
State law says a city's income limits can't be lower than the federal poverty guidelines published in the prior calendar year. Grand Rapids uses those federal figures.
What counts as income. Bulletin 17 lists wages before deductions, self-employment income, Social Security, SSI, unemployment, workers' comp, veterans' payments, public assistance, alimony, child support, pensions, annuities, scholarships, dividends, interest, rental income and gambling or lottery winnings. Form 5737 also asks about reverse mortgage payments and regular help from friends or family.
What doesn't count: the Michigan homestead property tax credit. The State Tax Commission, citing a Court of Appeals case, says local units can't count it.
The 2026 asset test
The City says household assets can't exceed $9,642. Its list includes automobiles, furniture, appliances, stocks, bonds, mutual funds, bank accounts, pensions and inheritances. Under state guidance, the value of the home itself can't be counted.
Here's how to think about it:
Usually listed as an asset | Not counted |
|---|---|
Checking, savings and money market balances | The home you're applying for |
Vehicles, boats, campers, trailers | The homestead property tax credit (as income) |
Stocks, bonds, mutual funds, pensions | |
Inheritances, lump sums, other property you own |
The City's older Commission Policy 700-07 used a $7,200 asset limit, adjusted for inflation since 2018, and left out one car and household furnishings. The 2026 guidelines give $9,642 and list cars and furniture as assets. Go by the 2026 guidelines and ask the Assessor if you're unsure.
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Gather your documents
The City asks for these documents with every application:
Document | Who it's for |
|---|---|
Driver's license or other ID | Everyone in the household over age 16 |
Deed, land contract or other ownership document | The property |
Income verification (Social Security, wages, disability, cash assistance, rental income, child support, alimony, food assistance and other income) | Everyone in the household over age 16 |
Federal, state and local income tax returns from the current or previous year, with any property tax credit forms | Everyone who lives in the home |
Current statements for checking, savings and money market accounts | All accounts |
Titles or registrations for cars, trucks, RVs, boats, trailers, motorcycles, campers and farm equipment | Vehicles in your name |
Form 4988, Poverty Exemption Affidavit | Anyone who didn't have to file tax returns |
Under state law, you don't have to disclose the income of an owner who doesn't live in the home.
Filling out Form 5737
Grand Rapids uses the state's Form 5737, Application and Affirmation for MCL 211.7u Poverty Exemption. The October 2025 revision combines the old application with the former Form 5739 affirmation. Be ready to fill in:
Your mortgage company, unpaid balance and monthly payment
Any other property anyone in the household owns
Employment details
Every source of income for everyone in the home
Bank, credit union and investment accounts
Life insurance policies
Vehicles with payments and balances owed
Everyone who lives in the home and what they contribute
Personal debts
Monthly expenses such as heat, electricity, water, food and health insurance
The State Tax Commission says the form must be complete, cover every household member and include all required documents. Incomplete applications can't be properly reviewed. Attach extra pages if you need them.
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How to apply
Get the form. Download it from the City's apply page, or pick one up on the 3rd floor of City Hall if you don't have a printer.
Read the City's instructions and the 2026 guidelines, which are linked on the same page.
Sign the original and attach your documents.
Mail or bring it to the City Assessor's Office, 300 Monroe Ave NW, Grand Rapids, MI 49503. Office hours are Monday to Friday, 8 a.m. to 5 p.m.
Wait for the Board of Review. The City says it can take months before the Board meets. You'll get an approval or denial by mail.
File with the City, not with the state. The state's fact sheet says not to send Form 5737 to the Treasury or the State Tax Commission.
Timing for 2026 and for last year
Poverty exemptions can be heard at the March, July or December Board of Review. The City says applications are accepted until the December Board ends. Call 616-456-3081 to confirm the last day this year.
Missed last year? Under PA 191 of 2023, the July or December Board can grant an exemption for the immediately preceding year. That applies if the exemption wasn't on the roll and wasn't denied before. The prior year's guidelines are used.
There's only one Board of Review decision per year. If one Board denies your application, a later Board that year can't rehear it. You'd have to appeal.
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If you're denied
Board that decided | Appeal deadline at the Michigan Tax Tribunal |
|---|---|
March Board of Review | July 31 of the same year |
July or December Board of Review | Within 30 days of the decision |
You can also appeal your assessment in the same year you apply for a poverty exemption.
Before you apply
☐ Confirm your Principal Residence Exemption is on file
☐ Add up household income and compare it with the 2026 table
☐ Add up assets other than the home and compare them with $9,642
☐ Gather IDs, proof of ownership, tax returns and bank statements
☐ Get a Form 4988 signed for anyone who didn't file taxes
☐ Complete every part of Form 5737 and sign it
YOUR NEXT STEPS
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More help in Grand Rapids
Official sources
Last checked: October 30, 2026. Income and asset limits, documents and office details come from the City of Grand Rapids apply page and its 2026 guidelines. Exemption levels, the Board of Review schedule, prior-year relief and appeal deadlines come from State Tax Commission Bulletin 17 of 2025, the taxpayer fact sheet and Form 5737 (Rev. 10-25).
This is general information, not tax or legal advice. The Board of Review decides every application under the City's guidelines. Call the Assessor's Office at 616-456-3081 to confirm the current limits and deadline.
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